The best of the action belonged to the Nasdaq 100. It gained nearly 2% in a move to challenge the 'bull trap'. It hasn't done so yet, but tomorrow could be the day new highs are posted for 2015. Today's gains came with a 'bull cross' in On-Balance-Volume.
The Dow regained the 200-day MA and added to the uptick in On-Balance-Volume, but it lost out in relative performance against Tech indices. After a period of out-performance, the Dow has spent the latter part of 2015 struggling to match the returns of other indices.
On the flip side, the S&P has had a better time in matching returns of its peers. The index is outperforming Small Caps, but still has a way to go to make new highs for the year.
The Russell 2000 also performed well, firming up 50-day MA support. The index hasn't yet reversed its relative performance decline, but more days like today will help.
Tonorrow may see some of today's gains reverse, but whatever bearishness generated by yesterday's action, was neatly undone by the strong performance of markets today. Dip buyers look to be at work here.
You've now read my opinion, next read Douglas' and Jani's.
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Dr. Declan Fallon is the Senior Market Technician and Community Director for Zignals.com, and Product Development Manager for ActivateClients.com. I do a weekly broadcast on Friday's at 13:30 GMT for Tradercast, covering indices, FX and gold, silver and oil - all are welcome! You can read what others are saying about Zignals on Investimonials.com.
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